Berkshire, Buffett Feel the Bear's Bite
Despite posting solid advances on Friday, stock markets were down last week, and all the same worries investors have had are still largely present. Midterm elections on Tuesday will draw attention, but the focus seems to remain on the Federal Reserve and broader macroeconomic pressures. In premarket trading, futures contracts on the Dow Jones Industrial Average (DJINDICES: ^DJI), S&P 500 (SNPINDEX: ^GSPC), and Nasdaq Composite (NASDAQINDEX: ^IXIC) were slightly higher, as investors seem to hope that things will turn out favorably.
Making news over the weekend was Warren Buffett, whose Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) reported its third-quarter financial results on Saturday morning. As was widely expected, the Oracle of Omaha did prove vulnerable to the bear market. However, its stock was up in premarket trading on Monday, and a closer look at the underlying businesses held within the insurance-focused conglomerate could leave you with a good feeling about Berkshire's prospects.
It's easy for those who aren't familiar with Berkshire Hathaway's accounting requirements to draw the wrong conclusion from a quick glance at the insurance giant's headline numbers. Berkshire posted a net loss of $2.69 billion during the third quarter, bringing its year-to-date losses to a staggering $40.98 billion.
Source Fool.com
